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India's Hospitality Sector Sees Robust 12.9% Growth in Q2 2025
26 Aug
Summary
- Bengaluru leads with 29.4% RevPAR surge
- Hyderabad sees 18.6% rise in average daily rate
- Over 100 hotel signings adding 13,398 keys
According to the latest JLL Report, India's hospitality sector has seen a robust performance in the second quarter of 2025. The industry recorded a 12.9% year-on-year rise in revenue per available room (RevPAR), with a sequential growth of 10% compared to the previous quarter.
Bengaluru has emerged as the standout performer, with a 29.4% surge in RevPAR, aided by effective rate optimization. Hyderabad also saw an impressive 18.6% increase in average daily rate. Other major markets, such as Chennai, Delhi, and Mumbai, have shown steady growth during this period.
The report also highlights the strong investor confidence in India's hospitality sector. Over the last quarter, the industry has witnessed the signing of 106 hotel deals, adding 13,398 new keys to the market. This surge in activity underscores the industry's resilience and the continued appeal of the Indian market to both domestic and international investors.
Roopa George, Senior Vice President of the Hotels and Hospitality Group at JLL India, commented, "Activity over the last quarter has also been exceptionally strong with over 100 hotels, 13,400 keys signed- investor confidence in India's hospitality sector. We continue to see consolidation across the sector, with a clear push towards efficiency and scale. Numerous partnerships have been announced with the country's top brands, with much of this activity concentrated in the midscale segment and emerging markets. Overall, the industry is very well placed to drive further growth."
